Fit-and-Proper-Guidelines.pdf - VANUATU FINANCIAL SERVICES...

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1 VANUATU FINANCIAL SERVICES COMMISSION GUIDANCE NOTES ON FIT AND PROPER CRITERIA SUPERVISION DEPARTMENT
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2 GUIDELINES ON FIT AND PROPER CRITERIA APPLICATION OF GUIDELINES These Guidelines on Fit and Proper Criteria [“these Guidelines”] are issued pursuant to section 19(A) of the Financial Dealers Act of 2017. These Guidelines set out the fit and proper criteria applicable to all participants and persons, in relation to the carrying out of regulated activity under the Financial Dealers Act. The Vanuatu Financial Services Commission (VFSC) expects each and every relevant person (either an applicant or a licensed person) to be competent, honest, persons of integrity and to have sound financial standing. This provides the Commission with the assurance that the relevant persons are willing and able to fulfill their statutory obligations under the Financial Dealers Act. This also underpins the Commission’s requirements that the relevant persons perform the activities regulated under the Financial Dealers Act efficiently, honestly, fairly and to act in the best interests of their customers. The onus is on each relevant person to establish, on reasonable grounds, that it or he is a fit and proper person rather than for the Commission to show otherwise. If the relevant person fails to satisfy the Commission that it or he is fit and proper, the Commission may refuse the person’s application, revoke the person’s authorisation, or take other appropriate regulatory action, as may be applicable and necessary. These Guidelines provide general guidance, and are not intended to replace or override any legislative provisions. They should be read in conjunction with the provisions of the Financial Dealers Acts, the rules made under the Acts, as well as written directions, notices, and other guidelines that the Commission may issue from time to time pursuant to the Act.
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3 DEFINITIONS 1. For the purposes of these Guidelines: “authorisation” means (i) a holder of a Principle licence under the Financial Dealers Act; (ii) a holder of a representative’s licence under the Financial Dealers Act; “Relevant Person” (i) a person applying for a grant of license under the Financial Dealers Act; (ii) a holder of the license under the Financial Dealers Act. FIT AND PROPER TEST 2. In considering whether a relevant person is fit and proper, VFSC will take into account the following criteria: (a) honesty, integrity and reputation; (b) competence and capability; and (c) financial soundness. However, the failure by a relevant person to meet any one of the criteria set out in paragraph 2 may not lead to an automatic refusal of an application or revocation of an authorisation. The significance and relevance of a relevant person failing to satisfy the Commission that it meets a specific criteria depends on - (d) the seriousness of, and surrounding circumstances resulting in, the relevant person not meeting the specific criteria; (e) the relevance of the failure by the relevant person to meet the specific criteria to the duties that are, or are to be, performed and the responsibilities that are, or are to be, assumed by the relevant person; and
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